Structured Finance for Commercial Real Estate Transactions: Close Deals When Traditional Debt Stalls

1 Overview

Rising rates, tighter bank capital ratios and “office apocalypse” headlines have slammed the brakes on vanilla property loans. Yet deals still pencil when the structure matches the asset’s cash profile. That is where structured finance steps up. We carve the income stream, isolate risks and place each slice with money that gets it, so acquisitions, refinancing and equity recaps move forward instead of languishing in credit-committee purgatory.

2 Why Structured Finance in CRE?

• Bridge-to-stabilisation: Cover tenant-improvement outlays and carry costs until the rent roll seasons.
• Take-out CMBS: Replace short-term bridge debt with fixed-rate notes once occupancy hits threshold.
• Note-on-note leverage: Unlock sponsor equity trapped in a senior loan without triggering defeasance.
• Sale-leaseback securitisation: Monetise corporate occupiers’ rent payments at investment-grade pricing.

3 Our Toolbox

Instrument	Use Case	Advance Rate / LTV	Typical Tenor
Transitional Bridge Notes	Value-add office, hospitality repositioning	65 - 75 % “as-is” value	18-36 months interest-only
Single-Asset Single-Borrower CMBS	Stabilised trophy assets	55 - 65 % appraised value	5-10 years amortising
Whole-Loan Re-Tranche	Release mezz equity on core portfolios	Up to 80 % blended LTV	3-5 years
Ground-Lease Wrap	Reduce cost of capital on new builds	95 % of fee-simple value split	50-99 year ground lease

4 Deal Timeline

Day 1-7: Asset data room and rent roll drop. We mark rough proceeds, pricing and fees.
Day 8-30: Structure modelling, third-party valuations, rating-agency pre-sound if needed.
Day 31-55: Term-sheet auction among banks, debt funds and bond investors. Sponsor selects the best stack.
Day 56-75: Docs close, cash funds. Cap-ex begins or old loan retires.
Light industrial parks close faster than mixed-use towers—plan for longer diligence on complex assets.

5 Case Snapshots

• Dallas suburban office park: USD 92 m bridge-to-stabilisation note at SOFR + 475 bps, 72 % “as-is” LTV, three-year term with extension options.
• Mid-Atlantic multifamily portfolio: USD 210 m SASB CMBS, ten-year fixed 5.3 %, 62 % LTV, cash-out enabled sponsor to acquire a new pipeline asset.
• Chicago data-center ground-lease: Split-structure yielded 110 bps savings versus straight senior mortgage, pushed developer IRR above 18 %.

6 Investor Comfort Measures

• Independent third-party appraisal and engineering reports baked into closing conditions.
• Cash-management waterfall with lockbox sweeps once DSCR trips below preset trigger.
• Monthly performance dashboards tracking occupancy, net effective rent and leasing pipeline.
• Step-in rights for lenders if budget overruns breach cap-ex covenants.

7 Why Financely

From 2020-2025 we arranged USD 4.6 billion in structured real-estate debt across office, logistics, hospitality and specialty use. We walked away from another USD 1.1 billion when value could not be pinned down, which keeps our close rate north of 80 %. Expect direct talk, investor reach and a timeline that holds.

8 Get Started

Working on a commercial real-estate transaction that needs more than a plain senior mortgage? Send the rent roll, T-12 financials and cap-ex plan. We will respond inside forty-eight hours with a clear go-or-no-go and indicative pricing.

Figures and timelines reflect Financely Group real-estate desk transactions 2020-2025. Funding remains subject to due diligence, investor appetite and market conditions.